News Now

Washington

Inside Washington (03/29/2012)

WASHINGTON (3/30/12)--Treasury Secretary Timothy Geithner was noncommittal Wednesday in endorsing legislation proposed by Sen. Richard Durbin (D-Ill.) that would allow borrowers to discharge private student loan debt in bankruptcy. Durbin's proposal would make it more difficult for financial institutions to collect on delinquent loans. Geithner, speaking during a Senate appropriations subcommittee hearing, told Durbin he shared his concern about the private student lending market, and said Treasury would be willing to work with him on a specific proposal (American Banker March 29). More than $1 trillion in student debt is currently outstanding, including more than $150 billion in private student loans, according to the Consumer Financial Protection Bureau. In 2005, bankruptcy laws changed to include private student loans as exempt from discharge in bankruptcy. Prior to that, only federal student loans were exempt …

WASHINGTON (3/30/12)--The number of new foreclosures initiated during the fourth quarter of 2011 decreased to 292,173--down 16% from the previous quarter, the Office of Comptroller of Currency (OCC) said Wednesday. The inventory of foreclosures in process also decreased to 1,272,287--down 4.1% from the previous quarter and 3.1% from a year earlier. The OCC Mortgage Metrics Report for the Fourth Quarter of 2011 showed delinquencies remained elevated, but declined from a year earlier. Mortgages that were 30 to 59 days delinquent were 3% of the total serviced portfolio at year end, and mortgages that were seriously delinquent were at 5% of the total portfolio …

WASHINGTON (3/30/12)--Consumer Financial Protection Bureau Director (CFPB) Richard Cordray said Wednesday a bill that would add the CFPB to the list of regulators to which financial institutions can provide confidential information without waiving attorney-client privilege could become law in May (American Banker March 29). The House passed the bill on Monday. Cordray, speaking before the U.S. Chamber of Commerce, said he was hopeful the Senate would pass the bill by Memorial Day …